12 - No One-Size-Fits-All Organisational Solution: Learning from Railway Developments in South Africa and Ethiopia

Summary

Against the backdrop of an increasing demand for efficient, effective and sustainable new infrastructure developments in Africa, this study examines two rapid railway transportation projects to explore alternative ways of organising. The analysis focuses on the Gautrain railway system in South Africa and the Addis Ababa City Light Rail Transit (AA-LRT) system in Ethiopia. Adopting a comparative approach, we investigate how the two capital-intensive project organisations succeeded in overcoming system bottlenecks, and in dealing with complex interfaces with the institutional environment. Our focus is on the structures designed by the project promoter to acquire the necessary formal resources – finance, human capital, certification and land – and to manage the interdependency with the environment. We also investigate the extent to which the developments succeeded in creating broad value beyond the private value appropriated by the private firms involved in design, construction and operations. In agreement with organisation design literature, our analysis suggests the design of the governance structures is directly influenced by the political and sociocultural environment. Therefore, we argue, designing project organisations to deliver infrastructure in Africa is not a problem with a one-size-fits-all solution.